IPO Foresight | Yuchai Shipyard: The largest domestic supplier of large motors for power generation, with cash in hand of 1.3 billion yuan
The largest domestic supplier of large motors for power generation has seen strong performance growth. Revenue has maintained double-digit growth, and profitability continues to rise. Can Yuchai Shipyard successfully go public after submitting the Hong Kong stock schedule for the second time?
The Zhitong Finance App learned that recently Yuchai Shipyard once again submitted a listing application to the main board of the Hong Kong Stock Exchange, with China Merchants Securities International and China Galaxy International as co-sponsors. The company is a leading supplier of power generation engines in China. According to Frost & Sullivan, in terms of 2025 sales revenue, the company is the number one supplier of power generation engines in China with a market share of 22.3%.
Yuchai Shipbuilding Electric's performance grew strongly. In 2023-2025, revenue increased from 3.239 billion yuan to 6.15 billion yuan, a compound growth rate of 37.8%. Revenue in 2026 was 4.494 billion yuan, a year-on-year increase of 50.9%, while profitability continued to increase. During the period, gross margin increased from 22.4% to 27.4%, and net interest rate increased from 12.2% to 18.4% during the year. As of June 2026, the company had $1,314 billion in cash and equivalents.
Driven by four major businesses, overseas markets are growing rapidly
The Zhitong Finance App learned that Yuchai Shipyard sells products to original equipment manufacturers (OEMs), end users and distributors around the world. Direct sales customers are mainly OEMs. The products mainly include power generation engines and marine engines. The company mainly provides “Yuchai” brand products. In addition, it also provides MTU brand products produced by the joint venture Yuchai Anteyou to meet the differentiated needs and preferences of customers through a dual brand strategy.
The company has four major businesses, including generators for power generation, marine propulsion engines and auxiliary engines, generator sets, and generator parts. Generators for power generation are the core revenue source, and revenue maintained double-digit growth. Revenue for the first half of 2026 was 3,032 billion yuan, an increase of 55.12% over the previous year, and revenue contributed 67.5%. This series of products includes large generators, heavy generators, and small to medium generators. Among them, large generators grew significantly, and the revenue share increased from 26.4% in 2023 to 40.2% in the first half of 2026.
Marine propulsion engines and auxiliary engines are the second largest business, and revenue share continues to decline, falling to 8.4% in the first half of 2026, down 6.85 percentage points from 2023. In addition, the company's generator set revenue began to grow in 2025, increasing its revenue share to 12.9% in the first half of 2026, and the share of engine parts and other revenue to 11.1%.
Photo source: Company hearing materials
Yuchai Shipbuilding Electric's product sales include self-production and outsourcing. Large generators are basically self-produced; heavy generators are self-produced and outsourced, while more than 60% of small and medium-sized generators are outsourced; marine propulsion engines, auxiliary engines, and generator sets all account for more than 80% of their own production. The company mainly uses its own products, and the capacity utilization rate is very high. From 2023 to the first half of 2026, the generator capacity utilization rates were 88.4%, 93%, 98.6%, and 94.3%, respectively.
It is worth noting that the company has a large amount of related transactions. From 2023 to the first half of 2026, it entered into multiple transactions with related parties (Yuchai Group entities and Yuchai shares related parties), accounting for 25.4%, 19%, 10% and 6.8% of revenue from related parties, respectively; procurement related parties accounted for 40.5%, 39.2%, 34.1%, and 31.5%, respectively. As can be seen, the company's dependence on related parties is gradually decreasing.
This is due to the steady growth in the number of customers. Yuchai Shipbuilding Electric had 556 customers in the first half of 2026, with the top five customers accounting for 39.9% of revenue and the largest customer accounting for 22.4% of revenue. Furthermore, due to the company's global layout, the overseas market grew rapidly. In the first half of 2026, revenue increased by 120.5%, and the revenue share increased to 5.2%. Up to now, the company's overseas sales team has covered Europe, the Middle East, Africa, Asia and South America.
It has the leading edge in the industry, and profitability continues to rise
From an industry perspective, according to Frost & Sullivan data, the global power generation engine market is 66.9 billion yuan in 2025, with a compound growth rate of 8.7% in the past five years. It is expected to reach 159.6 billion yuan by 2030, increasing the compound growth rate to 19%, with the Chinese market accounting for 30%. Looking at application scenarios, data centers have the greatest potential. The compound growth rate in the past five years has reached 29.7%. The global market is expected to be 107.3 billion yuan by 2030, with a compound growth rate of 22.9%, accounting for 67.23%.
Furthermore, the global marine engine industry is growing at a slow rate. The market size in 2025 was 77.4 billion yuan, and the compound growth rate in the past five years was only 1.4%. It is expected to be 80.5 billion yuan by 2030, a compound growth rate of 2%. Among them, medium- and high-speed marine engines are leading the way in growth, but their share is relatively small. The global market size is 5.4 billion yuan in 2025, with a compound growth rate of 23.5% in the past five years. It is expected to reach 7.7 billion yuan by 2030, a compound growth rate of 7.5%.
The power generation engine industry is highly concentrated. Currently, there are less than 50 participants in the Chinese market. High-power and high-value products are concentrated in leading companies. In terms of sales revenue, the top five participants had a market share of 62.4% in 2025. Yuchai Shipbuilding Electric ranked first in the industry with a market share of 22.3%, which is 9.4 percentage points higher than the second place. The same is true of the medium- and high-speed marine engine industry. There are less than 20 core industry participants, with the top three participants accounting for 57% of the market. Yuchai Shipyard ranked first with a market share of 22.3%.
Yuchai Shipbuilding Electric's core products have a certain scale advantage in the industry, and with leading advantages, they have a certain bargaining power. In addition, they also account for a relatively high proportion of self-production, precise cost control, and a trend of increasing profitability.
From 2023 to the first half of 2026, gross margins were 22.4%, 23.4%, 24.9%, and 27.4%, respectively. Among them, the gross margin of large generators and generator sets is high, and the gross profit contribution is also high. The gross margin for the first half of 2026 was 38.8% and 33.2%, respectively, and the gross profit contribution was 57.1% and 15.7%, respectively. Net interest rates continued to rise, at 18.4% in the first half of 2026, an increase of 6.2 percentage points compared to 2023.
The company is financially sound. The balance ratio for the first half of 2026 was 65.7%, of which the interest-bearing debt ratio was only 320 million yuan in the current portion, and the interest-bearing debt ratio was only 3.6%. As of June 2026, the company had cash equivalents of 1,314 billion yuan and receivables of 3.292 billion yuan, accounting for a high proportion of revenue. However, the 2.86 billion yuan account was within half a year, and according to the depreciation ratio of previous years' receivables was very low, it was basically refundable.
Overall, Yuchai Shipbuilding Electric's performance is growing steadily, driven by the four major business products. The three core business generator series products all maintained a growing trend. Furthermore, generator set growth was impressive, and the product structure continued to be optimized, while the overseas market doubled, or created a new growth curve. The company's core products are leading in the industry and have the advantage of scale. As domestic and foreign demand continues to be released and production expansion is implemented, performance may maintain high growth.
Yuchai Shipbuilding Electric's profitability is also strong. Both gross margin and net interest rates are on a high trend, and cash flow is healthy. This listing is expected to accelerate the globalization strategy. However, it is important to note that the company's related transactions, revenue and procurement all account for a certain share. The fairness of the transaction and changes in transaction share will affect the company's investment value.